The current maximum marginal tax rate is 35%. President Obama’s plan simply allows the Bush tax cuts to expire which they will do automatically in 2010 anyway. That will return the max rate to 39%. The net effect for some (but not all!) taxpayers earning $250k or more will be that they’ll pay an additional 4% in tax ONLY on the amount that is subject to the maximum rate, i.e. the amount that exceeds approximately $250k. (Actually, the top rate kicks in at $349,000 of taxable income so anyone with taxable income between about $200k and $349k will see NO change in their taxes under his plan!)

For example, let’s say that you have $450k in taxable income. The last $100k in taxable income will be taxed at 35% under the current law, for a tax of $35,000. Under Senator Obama’s plan, you’d pay $39,000 on that income, or $4,000 than you do right now.

Some on the right are making a LOT more about the tax increases for wealthy taxpayers than is actually there. Someone pulling down $450k in taxable income (about $459k or more in gross income) will pay about $4,000 in additional tax under the Obama plan. (There’s already one clueless response here that claims you’d pay 65%. That is total BS! And I’ll skip comment on his racist wisecrack.) Someone pulling down between $250k and $350k will see little or no change in their tax liability whatsoever. And anyone pulling down less than $250k will pay LESS tax than they currently do.

McCain’s plan would allow for tax cuts (from the current historically low rates) primarily for the wealthiest taxpayers. A CEO pulling down $10 million would probably pay about $850k less in tax. But if anyone thinks that he’d use that to create a dozen jobs, they’re mistaken. He’ll buy himself a Ferrari or a 50 foot boat or a cottage in France so some other such personal indulgence in most cases. But for the same cost to the US Treasury, the Obama plan could offer an $850 tax cut to 1,000 middle class taxpayers. That money would do more to grease the domestic economy than one Ferrari for an over-paid executive ever would.

Let’s talk about my bosses who are in the Home Health Care business. They were REALLY upset when Obama became president. Nothing good to say about him. Took magazines out of the office with his picture on it. While I was out on leave, took his pic off my computer (I know they did it). They thought President Obama wasn’t going to do a thing for them (they’re millionaires) but make them pay more taxes. Now, President Obama has mentioned raising Medicare/Medicaid and they couldn’t be happier. We are now going to start taking Medicare/Medicaid clients. Something we were never going to do before because of the type of client we would be getting. Is that not junk?

I said all of that because of the last line in your paragraph…..They want to complain about him and make threats toward his life but they will be enjoying whatever piece of the pie that they receive.

Amen Tori!!!

Karen,

I wanted to get back with you yesterday about that monkey…I feel people today are really sick. When Bush gave the first stimulus package it went to the banks and we saw what they did with it. No cartoon at all. No one made a big deal. I can’t believe that the Post posted this cartoon. When are people going to finally except that President Obama the good Lord willing is going to be in office for the next 4 years.. They want to complain about him and make threats toward his life but they will be enjoying whatever piece of the pie that they receive.

I don’t know what this world is coming too and I probably never will.